Waberer’s International closed the first quarter of 2025 with mixed results. While the insurance segment posted outstanding growth, the logistics and transportation divisions saw a decline in performance – partly due to strategic restructuring. Despite the challenges, the group increased its consolidated EBIT by 29%, reaching €11 million.
Consolidated revenue fell by 1.2% year-on-year to €194.4 million in Q1 2025. Net profit, however, jumped significantly from €1.1 million to €7.5 million, supported by favourable exchange rates and cost-efficiency measures. EBITDA rose by 15.9% to €25.6 million, with the profit margin improving to 13.2%.
Transport: strategic retreat and reshaping
The logistics segment – which includes international road transport, contract logistics, rail logistics and warehouse development – generated €155.9 million in revenue, a 10.3% year-on-year decline. The largest contributor to this drop was the international road transport division, where revenue fell by 13.6%.
This decline was anticipated, as the company had previously announced a business model shift at its Polish subsidiary, LINK, reducing its own fleet and strengthening subcontractor-based operations. LINK’s own fleet shrank by an average of 245 vehicles compared to the previous year, a 12% reduction. Overall, the group’s fleet decreased from 2,886 to 2,719 vehicles, a 5.8% drop.
The company’s fleet of alternative drivetrains remained unchanged at 25 vehicles: 14 electric and 11 LNG-powered. An additional three electric tractors and two electric trucks have been ordered and are expected to arrive in the second half of 2025.
In contrast, Hungary-based international transport operations saw a slight improvement, with a 2% revenue increase, mainly driven by the expansion of subcontractor activity.
Contract logistics: balancing falling volumes
While transportation activities faced headwinds, the contract logistics division helped stabilise the group’s performance. Revenue increased by 1.5% year-on-year, supported primarily by the expansion of waste transport projects and third-party warehouse developments. These gains helped offset the decline in consumer demand and industrial output, as well as the restructuring of in-house logistics contracts.
The segment’s gross margin decreased to €13.3 million, down 17% year-on-year. EBIT also declined sharply, by nearly 46%, to €1.4 million.
“Waberer’s was able to increase its EBIT-generating capacity by nearly 30% in the first quarter,” noted CEO Zsolt Barna, “despite facing stagnating or declining volumes in our core warehousing, distribution and transport activities due to macroeconomic trends in Hungary and across Europe.”
Cost reductions partially offset the revenue decline. Direct costs in the logistics segment – excluding depreciation – fell by 10%, primarily due to the smaller fleet size and resulting lower fuel, toll and driver expenses. Average employee headcount dropped by 10%, to 5,622.
Diversification strategy: insurance, rail, passenger transport
While the traditional logistics business underperformed, the group’s diversification strategy delivered increasingly visible results. The insurance segment – now including Magyar Posta Biztosító and Életbiztosító – increased its revenue by 87% and its EBIT by 62%.
Waberer’s is also entering the road passenger transport market: the acquisition of Pannonbusz is set to close in Q2 2025. Meanwhile, Serbian logistics company MDI and rail logistics player PSP Group are becoming more closely integrated into the Waberer’s structure.
The company has set an ambitious mid-term goal of exceeding €100 million in annual EBIT by 2031. To achieve this, Waberer’s plans to expand its nationwide warehouse network, scale up rail transport operations, develop its insurance activities and pursue regional growth opportunities.
